Report Predicts European Meeting Pricing Drops
Meetings and events venue pricing across Europe will experience widespread decreases throughout 2009 as massive demand cuts experienced at the end of 2008 will accelerate through this year, according to the Grass Roots HBI Meetings Industry Report released this week.
In the report, Grass Roots HBI international conference director Robert Bottomley forecasts a year-round pricing reduction of up to 30 percent against the rack rate, which follows a 20 percent decrease experienced in the last two quarters of 2008.
After several years of tight meetings venue space equating swollen rates across Europe and the United Kingdom, the meetings management company reported that meeting rates increased by less than 2 percent to £161.16 exclusive of VAT last year compared with 2007. With training and management centers, which saw an average rate jump of 22 percent, are removed from the mix, meeting rates declined more than 3 percent.
Average daily delegate rate—the per-attendee rate, without a room night—at all types of venues across the United Kingdom, dropped more than 12 percent year over year to £46.61.
The United Kingdom's "three-star sector has struggled with meeting rates" as average sector rates decreased 12.5 percent to an average of £121.17, the report said. London continued to be the strongest U.K. meetings market with an average daily delegate rate of £60.64 and a full average daily rate, including the room night, of £228.04.
While London held relatively strong, its major continental European counterparts are experiencing a far different pricing environment. According to Grass Roots HBI, 19 major European cities had average daily delegate rates increase year-over-year in 2008. The meetings management company is forecasting that, except for Paris, all will experience rate decreases this year, including double-digit percentage point drops in Berlin, Copenhagen, Milan, Rome, Stockholm and Zurich.
Paris remains the most expensive city as the DDR for five-star properties is expected to increase 3.5 percent this year to €113.88. Parisian four-star properties are slated for a one-half percentage-point DDR increase to €93.55.